Apple (AAPL) Rumors – 99-Cent TV Downloads Panned

TV studios object to episode rental pricing

   

Apple (AAPL) Rumors – 99-Cent TV Downloads Panned

Here is your daily Apple (NASDAQ: AAPL) stock news and rumors report for Sept. 24, 2010. Television studios remain unconvinced that Apple’s new 99-cent show rentals are a good idea, prompting fears the Apple TV feature may be short-lived. More rumors of new AAPL mobile devices are also pouring out of Asia this morning, while another Chinese news outlet says that the 7-inch iPad is a “finished product.”

Viacom Disapproves of 99-Cent iTunes Downloads; CBS Cautious: Prior to the announcements of the new streamlined Apple TV and the Cupertino, Calif. computer technology manufacturer’s new, more aggressive television show rental pricing, word in the business world was that TV studios were less than enthused with Apple’s plans. While News Corp. (NYSE: NWS) broadcaster Fox and Disney (NYSE: DIS) property ABC offered early support, other content providers like CBS (NYSE: CBS), Time Warner (NYSE: TWX) and GE (NYSE: GE) studio NBC were all staunchly against the introduction of 99-cent TV episode downloads. Now Viacom is expressing discontent with Apple’s television business model. Viacom (NYSE: VIA) CEO Philippe Dauman said that the “99-cent rental is not a good price point” and “it doesn’t work” for Viacom’s properties, in remarks during a conference call hosted by Goldman Sachs, The Wall Street Journal reported.  Dauman went on to emphasize that it costs a great deal of money to produce the shows on Viacom’s cable channels like Nickelodeon, MTV and Comedy Central, and that Apple’s new rental structure doesn’t reflect that content’s value. NBC CEO Jeff Zucker voiced the same frustration with Apple’s 99-cent pricing saying, “We think (the 99-cent price point) would devalue our content.” CBS, however, is waiting to see how the ABC and Fox rentals perform. Les Moonves, CEO of CBS, said that his company will re-evaluate their participation in January after seeing how well the 99-cent rentals perform for their competitors.

Asus Subsidiary to Begin CDMA iPhone 4 Production in November: The very latest in the march of rumors surrounding the release of a CDMA iPhone comes from Taiwanese tech news outlet Digitimes, via Electronista this morning. Word is that Pegatron, a subsidiary of Chinese computer manufacturer ASUSTeK Computer, will begin production of not just a CDMA iPhone in November, but a CDMA version of Apple’s recently released iPhone 4. Previous rumors have indicated that the CDMA iPhone would be a 3GS or even a 3G model developed for carriers Verizon (NYSE: VZ) or T-Mobile USA, a subsidiary of Deutsche Telekom (PINK: DTEGY). Digitimes‘ sources claim that Pegatron expects to produce around 4 million of the CDMA iPhone 4s between November and February and could manufacture 11 million of the smart phones by June 2011.

7-inch iPad ‘Finished,’ Claims Chinese Source: Website Shanzai.com is reporting this morning that the rumored smaller iPad has left the planning stages and is now ready for manufacture at production plants in Shenzen, China. The outlet claimed that Apple has tested five different designs for the device and that the finished 7-inch tablet computer has a form factor closer to the iPhone 4 than the current 9.7-inch iPad. The smaller form factor would make the iPad similar to Samsung’s Galaxy Tab or Research in Motion (NASDAQ: RIMM) in its still-unconfirmed BlackPad.

As of this writing, Anthony Agnello did not own a position in any of the stocks named here.

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